Professional Documents
Culture Documents
Ethical Behaviour
Why should managers behave ethically? Why do businesses expect their manager to
make ethical decisions?
(1) Society expects and wants businesses to act responsibly.
(2) Businesses wish to avoid lawsuits, or criminal consequences, and unethical
behaviour.
(3) It may improve the public image of the business and lead to increased sales.
(4) It may create a better overall environment for all to enjoy.
(5) Voluntarily making the right choice may be a preventative measure and avoid an
increase in government regulation.
(6) An increase in employee and community pride may lead to less employee turnover.
Ethical Dilemmas
An ethical dilemma arises where a manager is faced with a situation that offers a
potential gain or benefit; but choosing to pursue the situation may be considered unfair,
wrong, or dishonest. There are many areas where ethical dilemmas arise. Here are
four categories of common ethical dilemmas in business.
(1) human resource issues, e.g. discrimination in hiring or promotion, harassment
(2) customer safety issues, e.g. unsafe products and services to gain profits
(3) conflict of interest issues, e.g. bribery or kickback in return for making a decision
favourable to the giver
(4) use of corporate resources, e.g. employee using business assets for personal
gain, business interest superseding Aboriginal land claims, and environmentally
irresponsible choices
Code of Ethics
A code of ethics communicates the purpose, values, and objectives of a business and
outlines expected behaviour for employees. Large corporations almost always have a
formal, written code of ethics (or code of conduct).
Questions:
1. What are ethics?
2. What is a stakeholder?
3. Why should managers behave ethically? Why do businesses expect their
manager to make ethical decisions? (List four)
4. What is an ethical dilemma? What four areas can they occur?
5. What is the framework for solving an ethical dilemma?
6.
Exemplar:
Summary of Article
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Answers:
Attachment 11 Business Ethics Case Studies: Whistle Blowing and the Environment and The
Polluters Dilemma Chris MacDonald
troubled by this apparent disregard for public safety. On the other hand, she
asks
herself whether maybe Angela is right in arguing that the danger is minimal.
Chantale looks up the phone number of an old friend who worked for the
local
newspaper.
Questions for Discussion:
1. What should Chantale do?
2. What are the reasonable limits on loyalty to one's employer?
3. Would it make a difference if Chantale had a position of greater authority?
4. Would it make a difference if Chantale had scientific expertise?